Cramer's 'Mad Money' Recap: March 18

"Ladies and gents, it's time to buy a house," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday.

He said his prediction last year that a bottom in housing is coming in just 105 days from now is looking better and better by the day.

Cramer again sang the praises of Federal Reserve Chairman Ben Bernanke for not only adopting many of the ideas Cramer has been preaching, but also setting up what he called a pending economic explosion.

He said with the Fed's announcements today, Bernanke has single-handedly created the 4% mortgage rate that Cramer said would be needed to stabilize home prices and stop home price deflation.

Cramer also commended the Fed's new loan programs that will help hedge funds buy up the now not-so-toxic mortgage backed securities. He said that these moves, along with the reinstatement on the uptick rule, and new mark-to-market accounting rules, are exactly what the banks, the markets, and the economy needs.

Cramer said he doesn't care if these moves hurt the dollar, saying that a weaker dollar actually helps U.S. businesses compete in the global marketplace. He said it's far better for the Fed to do too much, than too little.

Adjusting to the Recession

Cramer talked with David Steiner, CEO of Waste Management ( WMI), to find out just how recession proof the waste business is.

Steiner said Waste Management's business is split evenly among residential, commercial and industrial waste services. He said that while the company's residential and commercial businesses are recession-resistant, about one-sixth of Waste Management's overall business is levered to construction and other economically sensitive areas. He said it's in that area that the company saw a 10-15% drop in volume this quarter.

Steiner also cited commodity costs as another variable. He said the huge fall in commodity prices has affected the company's recycling businesses, but he's now seeing prices begin to stabilize.

Steiner said that while Waste Management has huge fixed costs, he's making efforts to right-size the operation, adding the company's 5% dividend yield is safe. Waste Management has plenty of cash to pay it, he said, and he expects cash flow to grow in 2009.

Steiner said Waste Management is also looking for acquisitions and expects to meet last year's target of $250 million worth of mergers. Cramer said he's still a big fan of Waste Management.

AIG in Perspective

"President Obama has made this rally possible," Cramer told viewers, "but now AIG ( AIG) is putting that all in jeopardy.

Cramer said even after the huge market rally and all of the positive news last week, including profitable banks, oil and copper prices trending higher and better than expected retail numbers, AIG still has the power to undo it all. AIG, he said, has put it everything on the line.

Cramer explained that if Obama changed his tune, from one of demonizing the banks and not seeming to care about the markets, to one of optimism and an understanding that stocks to matter, this rally wouldn't have happened at all.

But now with AIG back in the limelight, Obama needs to continue that tone, and realize that for as despicable as AIG is, it's the exception and not the rule.

"AIG is not the poster child for all of the financials," said Cramer. AIG is not like the rest, and we cannot demonize all of the banks or the Dow will quickly drop right bank to 6,500, he said.

Am I Diversified?

Cramer talked with callers about their portfolios to see if they have what it takes. The first caller's portfolio included Verizon ( VZ), BP ( BP), Freeport McMoran ( FCX), iShares China 25 Index ( FXI) and Caterpillar ( CAT).

Cramer said this is a perfectly diversified portfolio with a good yield.

For "Mad Money" performance statistics and other links, check out Mad Money stats

At the time of publication, Cramer was long Freeport McMoRan, Caterpillar, Foster Wheeler, Johnson & Johnson, iShares China 25 Index.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for TheStreet.com, Inc., and CNBC, and a director and co-founder of TheStreet.com. All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of TheStreet.com or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither TheStreet.com, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or TheStreet.com is related to the specific opinions expressed by him on "Mad Money."

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President Trump's move Thursday to cancel his meeting with North Korea leader Kim Jong Un sent the stock market into a "tizzy," according to TheStreet's founder and Action Alerts PLUS Portfolio Manager Jim Cramer.